How does NPS work?

How does NPS work?

Under the NPS, an individual's savings is contributed to a pension fund. These pension funds are managed by PFRDA regulated Fund Managers who invest the pension money into a diverse portfolio of varied products in line with the regulatory norms. These funds grow and accumulate long term returns over the years. The NPS invests in the following products:

  1. Class A - Alternative investment (REITS)
  1. Class E - Equity
  1. Class C - Fixed income (other than Government)
  1. Class G - Government Securities.

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